- IMPS, a 24×7 instant domestic fund transfer system, will introduce a new feature on February 1, 2024
- Users will be able to transfer money by just entering the receiver’s mobile number and bank name
- This will make the money transfer process faster, easier, and more secure
New Delhi: The National Payments Corporation of India (NPCI), the umbrella organization for retail payments in India, has announced a new feature for the Immediate Payment Service (IMPS), which will make money transfer from one bank to another more hassle-free. From February 1, 2024, users will be able to transfer money through IMPS by just adding the receiver’s mobile number and bank name, without the need to add beneficiary details such as account number or IFSC code.
According to a circular issued by NPCI on October 31, 2023, all member banks are requested to comply with the mandate to initiate and accept fund transfers through mobile number + bank name on all IMPS channels by January 31, 2024. The circular also said that banks will provide the option to add a successfully validated mobile number and bank name combination as payee/beneficiary on mobile banking and Internet banking channels.
The new feature will streamline the money transfer process, making it quicker and reducing the risk of errors associated with entering detailed beneficiary information. Additionally, real-time beneficiary validation will be performed before the transaction is authorized, further minimizing the chances of incorrect transfers. The new feature will also enhance the security and privacy of the users, as they will not have to share their account details with others.
IMPS is one of the most commonly used methods of money transfer in India, as it provides a 24×7 instant domestic fund transfer facility and is accessible through various channels like internet banking, mobile banking apps, bank branches, ATMs, SMS, and IVRS. IMPS currently processes transactions through P2A (Account + IFSC) or P2P (Mobile Number + MMID) transfer modes, which require the user to add beneficiary details before transferring money. The new feature will offer a third mode of transfer, which will be more convenient and user-friendly.
